- Renewable electricity in IKEA production rose from 71% to 75% in FY24, expanding to 14 additional markets.
- IKEA’s climate footprint dropped by 5% in FY24, marking a 28% reduction since FY16.
- Sustainability investments include material innovation, electrification of transport, and renewable energy expansion.
IKEA Accelerates Shift to Renewable Electricity
IKEA increased the share of renewable electricity in production to 75% in FY24, up from 71%. To drive further adoption, the company launched a third wave of its renewable electricity program, expanding to 14 new markets, now covering 27 markets and 91% of CO2 emissions from electricity used in production.
“We have received great response from our partners since the launch of the program and are excited to expand it further. The share of renewable electricity used by our suppliers in Vietnam increased by 40 percentage points between FY23 and FY24, reaching 84%,” said Susanne Waidzunas, Global Supply Manager at Inter IKEA Group.
China and India, among the initial markets included in the program, saw significant reductions in emissions: 87% in China and 49% in India since FY20. The current share of renewable electricity in production is 92% in China and 69% in India.
Related Article: IKEA Accelerates Suppliers’ Shift to 100% Renewables
“We are striving towards 100% renewable energy across the IKEA value chain. Electricity generation from fossil fuels is one of the largest sources of greenhouse gas (GHG) emissions globally,” said Sriram Rajagopal, Head of Climate and Air Quality at Inter IKEA Group.
IKEA Sustainability and Climate Reports FY24
IKEA’s climate footprint fell 5% in FY24 compared to FY23, reaching 21.3 million tonnes CO2 eq—a 28% reduction since FY16. The decrease resulted from increased renewable energy use, electrification of transport, and material efficiency improvements.
“Our business direction is clear. We want to make IKEA more affordable, accessible, and sustainable, including for people with thin wallets. We lowered prices by an average of 10% across all markets while making steady progress on our sustainability agenda,” said Jon Abrahamsson Ring, CEO of Inter IKEA Group.
Sustainability Milestones in FY24:
- Renewable energy in IKEA operations increased to 71% (from 67% in FY23), with renewable electricity reaching 81% (up from 77%).
- 100% renewable electricity achieved at 93 additional factories, bringing the total to 491 (44% of direct suppliers).
- Reduction in foam use for mattresses by 20% through alternative comfort and design solutions.
- Expansion of TRIXIG product range to improve repair and prolong product lifespan.
- 97% of IKEA wood sourced from FSC-certified or recycled sources.
- Introduction of paper-based bags for furniture fittings, reducing plastic consumption by 1,400 tonnes annually.
- Expansion of plant-rich food offerings with hybrid meat-plant protein patty introduced in Sweden.
The Road to Net Zero
IKEA has set a FY30 climate roadmap aligned with Science Based Targets initiative (SBTi) goals, aiming to halve overall emissions by FY30.
“Our commitment and investments in sustainability are crucial for safeguarding both people and the planet and ensuring IKEA’s long-term success,” said Jon Abrahamsson Ring.
The strategy includes phasing out fossil fuels, responsible sourcing, and promoting circular design for longevity and recyclability. Additionally, IKEA endorsed the Business for Nature statement ahead of COP16, calling for stronger policy action on biodiversity.
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